Short-selling Ether via NuoLend
What does this mean? Buy low. Sell high. But just not in that order.
Short selling is the sale of a security that is borrowed by you. The way it works is that you borrow a security(you believe is going to lower in value) and then sell it immediately on the exchange. Once the value lowers enough, you then buy it back from the exchange and return it back to the lender. The net profit you make is the price drop of the security minus the interest that you incurred due to the borrowing.
Introducing NuoLend
NuoLend — a permissionless, global & decentralised p2p lending platform — is the ideal tool for this strategy. This requires no lengthy registrations, no cumbersome form-filling and no delaying KYCs as well. Just go to lend.getnuo.com, install the metamask plugin and you are good to go. And since this is backed by smart contracts, you don’t need to worry about the security of the funds that you put in to this platform(smart contract).
How does this work? This requires you to borrow Ether by putting in a collateral in the token of your choice. After borrowing the Ether, you can sell it on the exchange of your choice and buy it after the dip to return it back to the lender on the NuoLend platform.
Example:
Price of Ether on May 20, 2018: $500
Your prediction for Price of Ether on May 30, 2018: $400
Action: You borrow 1 Ether worth $500 from NuoLend on May 20, 2018 at a premium of 5%. Sell that borrowed ether on the exchange of your choice. If your prediction does come true, you will be buying it back on May 30, 2018 for $400 and repaying the lender on the NuoLend platform after adding a premium of $25. Your total profit will be $75 during the price fall.
All this is good, but what if your prediction goes wrong and the price actually rises instead of falling? Well, then you have to face the loss, but the good thing about this platform is that your losses are capped at 50% of your initially invested amount. You will have an option to not return the borrowed Ether at all, but your collateral(which was 1.5x the loan amount) will be given to the lender by the smart contract automatically. And, yes, you will be allowed to borrow again from this platform. NuoLend will have nothing against you, even if you default on your loan :)
What’s more? NuoLend is giving $10 worth Ether as crypto-back (for the first 50 loans only) into your Ethereum wallet as soon as you apply for a loan. Click here to apply for a loan now! Click here if you want to see a step-by-step tutorial on how to create a loan.
